Bookmakers prey on the poor and destroy communities, says Harman

The shadow culture secretary argued that betting firms were deliberately opening up branches in poor areas, pushing families further into poverty and creating a link between benefit dependency and gambling.

Speaking exclusively to the Evening Standard, she also called for tighter rules on "evil" high-stakes games machines which had created a "casino on every high street".

The outspoken comments provoked an angry response from the industry, which accused her of making an "unwarranted attack" on a sector that supports 100,000 jobs.

The reaction came after Ms Harman said so-called B2 machines had led to an explosion of new betting shops on struggling high streets because bookmakers are limited to four terminals in each branch - but they are so profitable that bookies get round the restriction by opening multiple shops in the same roads.

She pointed to her own Camberwell and Peckham constituency, where one shopping area has eight betting shops in two streets. And as further evidence that poor areas are being targeted, she highlighted previous research from Tottenham MP David Lammy that indicated Newham has three times as many bookmakers as Richmond-upon-Thames.

"These betting shops are appearing not in well-off areas but in those with high levels of poverty and unemployment," Ms Harman said. "This is predatory profiteering which is destroying our high streets, pushing many families further into poverty and creating a dangerous synergy between welfare dependency and gambling that threatens the fabric of our communities.

"The proliferation of bookmakers is damaging the look and feel of our high streets, making them feel less safe and less welcoming, and making our high streets less diverse."

Ms Harman called on the Government to bring down the maximum stake on B2 machines from £100 to £10, saying they can take up to £18,000 an hour with no supervision.

Labour also wants new powers to enable councils and local people to stop betting shops opening in their areas.

But Dirk Vennix, chief executive of the Association of British Bookmakers, argued that bookmakers generate £1 billion a year for the taxman, saying: "There is no evidence that betting shops increase poverty. In difficult economic times, politicians need to support businesses, not attack what is for most people a fun experience."

A spokesman from the Department for Culture, Media and Sport said there was a "lack of firm evidence" about the impact of B2 machines.